A novated car lease is an affordable way for an employee to drive a car of their choice.  The vehicle is not required to be work related. It can be a second car.

Packaged novated car leases also offer considerable advantages for employers:

-         cars do not appear on your balance sheet

-         leasing can be packaged to minimise or eliminate FBT

-         no deposit is required on the vehicle

-         a departing employee takes over the car and the car financing responsibilities

Novated car leases need careful packaging to suit individual usage, salary and circumstances. 

SPG Guardian can organise the vehicle finance and novated lease, to make the process simple.

Examples:

Employee has 2 children under 13.  Car costs $35,000 to buy and travels 15,000-25,000 kilometres a year.  Employee packages lease costs and running costs. 

The employee is $2,500 to $3,100 better off by salary packaging the car. The employer saves $300 in reduced payroll tax and workers compensation premiums.

A single person earning $80,000 salary packages the lease and running costs of a $45,000 car, and travels 26,000 kms a year. The employee saves $3,600 pa in tax savings. The employer saves $460 in payroll tax and insurance employment oncosts. 

The examples illustrate how different employee circumstances yield different results.  

It is a myth that salary packaging a car is just for the high income earner. The key issue is - do you have a job ?

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